Nationwide cuts rates by up to 0.15%

Nationwide Building Society has reduced selected fixed and tracker rates by up to 0.15% effective from tomorrow, Friday 1st September.

Its remortgage range will see reductions of up to 0.15% across selected 2-year, 3-year and 5-year fixed products and 2-year tracker products up to 90% loan-to-value (LTV).

New customers moving home will also benefit from reductions of up to 0.15% across 2-year, 3-year and 5-year fixed products, as well as 2-year trackers.

The society’s first-time buyer range will see reductions of up to 0.15% across selected 2-year, 3-year and 5-year fixed products up to 95% LTV, including a 5-year fixed rate at 75% LTV with a £999 fee at 5.25% and a 2-year fixed rate at 75% LTV with no fee at 6.29%.

Nationwide also reduced selected 2-year, 3-year and 5-year fixed and 2-year tracker rates for existing customers moving home by up to 0.15%, while switcher and additional borrowing rates will reduce by up to 0.10%.

This followed a number rate reductions introduced by other major lenders over the past few weeks.

Henry Jordan, director of home at Nationwide Building Society, said: “The current swap rate environment is enabling us to make further rate cuts across our mortgage rates and this is now the fourth time we’ve been able to reduce our rates over the last month as we look to support all types of borrowers as much as we can.”

Nicholas Mendes, mortgage technical manager at John Charcol, added: “It’s great to see another major high street lender supporting the market with rate reductions.

“While it 0.15% might not seem significant, Nationwide Building Society are continually amongst the market leaders for fixed rates, and they are continuing to show their commitment to supporting the market.

“For the remainder of the year, I expect to see lenders continue to reprice downwards albeit sporadically, with a mixture of criteria changes.”

Further reaction:

Lewis Shaw, owner and mortgage expert at Shaw Financial Services:

“This is another step in the right direction as mortgage rates continue to fall, although we must be mindful that this could be a short-lived reprieve if the Bank of England continues to increase the base rate next month.

“We’ve seen several changes in lending policy, such as lenders opting to allow longer terms and expanding the types of income they will allow, which all point to lenders trying to be more flexible as their lending volumes decrease and they seek to get more new business on the books.

“This shows that reduced housing and mortgage market demand is now starting to bite, and banks are looking for any way to keep the wheels turning as the growing clouds above the economy are slamming the brakes on borrowing.”

Riz Malik, founder and director at R3 Mortgages:

“Even minor rate reductions are appreciated, especially considering the hikes borrowers have experienced over the past six months.

“The current trend in rate cuts appears to be ‘little but frequent.’ Either way, here’s hoping this trend extends into the coming weeks.”

Ashley Thomas, director at Magni Finance:

“There seem to be a lot of lenders reducing their rates at present.

“I expect this trend to continue and most will be hoping it is the start of a price war.

“The next set of inflation data will be a big factor in whether rates will continue to go down.”

Justin Moy, managing director at EHF Mortgages:

“Another ‘nibble’ at Nationwide’s fixed rate range. This is a welcome response to the wider market competition and lenders reacting to better market conditions.

“Interestingly, this includes some of their tracker range as other lenders have just tinkered with their fixed rates, so it definitely seems to have something for everyone. Another step in the right direction.”

Peter Stamford, director and lead adviser at Moor Mortgages:

“Mortgage rates are dipping, a hopeful sign in uncertain times.

“With the Bank of England’s looming decisions and the economy’s stormy clouds, banks are hustling to adapt and entice borrowers.

“From embracing flexibility to welcoming tiny rate reductions, the trend hints at a brewing price war. Nationwide’s inclusive rate adjustments stand out, making sure there’s something for everyone. A promising direction indeed.”

Gary Boakes, director at Verve Financial:

“Every little helps for both purchasers and existing customers, any news of rate reductions is great.

“At 0.15% it is not going to make a huge difference to the market and is nationwide positioning themselves to try and gain more business.”